Michael Is in the Business of Creating Posters (Display Art)

question 73

Multiple Choice

Michael is in the business of creating posters (display art) for the movie industry. He creates a poster and sells it for a lump sum. He has:

• A) Sold a capital asset.
• B) Sold an ordinary asset.
• C) No gain or loss.
• D) An ordinary gain.
• E) b. and d.

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Definitions:

Holtz Motor

A type of single-phase synchronous motor.

RPM

Revolutions per minute, a unit of rotational speed that indicates the number of turns made by an object in one minute.

Universal Motor

An electric motor that can operate on either AC or DC power and is commonly used in portable tools and appliances.

AC

Alternating Current, a type of electrical current where the flow of electric charge periodically reverses direction, commonly used in power supplies.